I came across a problem when i was playing around the Active Directory today. I have created a new user in AD and tried to login to the machine with the newly created username and password. At the time of logging to the machine the error was “The local policy of this system does not permit you to logon interactively.”.
SOLUTION
1. Click Start, point to Programs, point to Administrative Tools, and then click Domain Controller Security Policy.
2. Double-click the Security Settings folder, double-click Local Policies, and then click User Rights Assignment.
3. Under the Policy column, double click “Allow Log on Locally”.
4. Click “Add User or Group”, and then select the user to be added.
5. Click OK, click OK, and then click OK.